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Sharman Networks - the company behind peer-to-peer file sharing outfit Kazaa - has denied it is able to block users who use the service to share child pornography.

Sharman Networks is currently in the Australian Federal Court in Sydney facing allegations that it created the world's largest music piracy network and knew that its software was being used to distribute music illegally.

Earlier in the trial, Tony Bannon, QC - representing dozens of music companies including Universal, EMI, Warner and Sony BMG - dismissed Sharman Networks' claim that the company had no control over how its software was used.

Quoting the company's policy on child pornography, he said: "If at any time Kazaa finds that you are using Kazaa to collect or distribute child pornography or other obscene material, [Sharman] reserves the right to permanently bar you and your computers from accessing Kazaa and other Kazaa services."

The argument went on, that if Kazaa could bar traders in illegal child porn images, then it could block users who illegally distribute music.

However, Philip Morle, Sharman Network's chief technology officer, told the court yesterday that he did not think the company could bar people who used its P2P software to distribute child pornography. He went on to say that he didn't know how people could be blocked; nor was he aware of Kazaa's policy on child pornography, reported ZD Net Australia.